1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Orlov [11]
3 years ago
11

For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as s

een by the marginal investor, and (2) the expected return as seen by the marginal investor must equal his or her required return.
Business
1 answer:
nevsk [136]3 years ago
4 0

Answer:

True

Explanation:

For a stock to be in equilibrium, two conditions are necessary:

(1) The stock's market price must equal its intrinsic value as seen by the marginal investor;

(2) the expected return as seen by the marginal investor must equal his or her required return.

You might be interested in
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
3 years ago
Product differentiation refers to: consumers who sort and group goods based on similar characteristics. firms who offer similar
Luba_88 [7]

Answer:

firms who offer similar products to their competitors' products, but that are more attractive in some way

Explanation:

Product differentiation is marketing strategy where a firm makes its different from that of its competitors in order to make the product more attractive to consumers

3 0
2 years ago
Todd has made total contributions of $75,000 to his traditional IRA of which $15,000 were nondeductible contributions. Todd is 6
Over [174]
The answer is C
........ i think
3 0
3 years ago
A donor gave equipment valued at $90,000 at the beginning of 2020 to a private not-for-profit organization. The equipment had a
Slav-nsk [51]

The net asset would be $81,000 or $0 depending upon the policy of the Non-Profit Organization.

<h3><u>What is a Non-Profit Organization?</u></h3>
  • A non-profit organization is a group that was established with the intention of making a profit, and in which no part of the organization's revenue is given to its directors, officials, or members.
  • "Non-stock corporations" are a common moniker for nonprofit organizations.
  • They may be organized as a corporation, a sole proprietorship, an unincorporated association, a partnership, a foundation, a condominium, or another type of individual enterprise (for instance, individual charitable contributions) (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts).
  • When they are established, nonprofit organizations must declare themselves to be so and are only allowed to work on projects that fall under their legal definition.

The value of the equipment given by the donor = $90,000

The charge of depreciation = $9,000.

The total assets of a business less the total liabilities equals the entity's net assets. The sum of a company's net assets equals its stockholders' equity in whole. Net assets are divided into unrestricted and restricted net assets of a nonprofit organization.

The net asset would be either $81,000 or $0.

Know more about Non-Profit Organization with the help of the given link:

brainly.com/question/21307064

#SPJ4

5 0
2 years ago
Which of the following statements is CORRECT?
Leya [2.2K]

Answer: C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.

Explanation:

The beta coefficient is used by an economic entity to measure how volatile an individual stock is when such stock is being compared to the market's systematic risk.

Of the options given in the question, the correct answer is option C which states that "C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future"

8 0
3 years ago
Other questions:
  • Which of the following manufacturing costs is an indirect cost of producing a product? amissions for sales personnel b.memory ch
    15·1 answer
  • William is a single writer (age 35) who recently decided that he needs to save more for retirement. his 2017 agi is $65,000 (all
    15·1 answer
  • You would like to buy shares of International Business Machines (BM). The current bid and ask quotes are $103.25 and $103.30, re
    7·1 answer
  • The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial ma
    15·1 answer
  • Alfred, Mario, and Lydia have worked together on the same team for three years. The company has just hired a new personnel direc
    13·2 answers
  • Company A accounts for its investment in Company B under the equity method. Company A carried the Company B investment at $150,0
    15·1 answer
  • Methods of short-term financing include?
    12·1 answer
  • How much notice does the Worker Adjustment and Retraining Notification
    8·1 answer
  • Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discou
    14·2 answers
  • If a company decreases its selling price by $4 per unit, due to a decrease in its direct material cost of $4 per unit, the break
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!